ADMS 1000 Study Guide - Final Guide: Foxconn, International Trade, Economic Union

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Paulette Burgher

Document Summary

Globalization is an attempt to integrate the national economies to generate a single economy. This increases cross border transactions; it reflects growth towards economic independency. Potential for sales growth as there is a bigger market available. It gives the sellers immunity from a downturn in their own economy as they can sell to countries not facing a downturn. Obtaining needed resources: it allows countries to access the resources they do not have. For example, some countries do not have the weather condition to grow crops, so they can import it from other countries. There is high competition in the international market. Outsourcing/offshoring: hiring external organization to conduct work in certain functions of the company. Example: apple employs foxconn to produce the parts used by apple. Licensing agreement: allowing others to use a brand name, product and/or process in return for royalty.